Settling with Discover card need help!

[Anonymous]

Recently fell on hard times and stopped making payments on my discover card. I owe $15,500, I recently got a letter from them offering 40% off my debt. I have spoken to them and I am trying to go for a 50% they said they will let me know tomorrow. Also it will appear in my credit report as setteled. Do you think they are able to go 50% and mark as payed in full? 

[Anonymous]

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@Anonymous wrote:

Recently fell on hard times and stopped making payments on my discover card. I owe $15,500, I recently got a letter from them offering 40% off my debt. I have spoken to them and I am trying to go for a 50% they said they will let me know tomorrow. Also it will appear in my credit report as setteled. Do you think they are able to go 50% and mark as payed in full? 

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It is difficult to say whether or not they will go as far as 50%. Should they repeat their current offer to settle the account, if you have the resources to pay the debt, then it's important to do so to stop further collection activity.  Did the letter you received state that the account would be marked paid in full, settled for less than full amount or something to that effect?  It's important to see that language in their settlement letter so that the remaining debt isn't sold to a CA.  Given the size of the debt assuming you settle,  you'll more than likely receive a 1099 for the cancellation of the debt and have to pay taxes on it next year.  

Keep us posted on what you decide.

[toomchz4u]

They are not going to mark it paid in full... Simply because you didnt... They settled around 50 percent for me but be prepared because that 1099 is on the way in January and you will have to deal with that on your taxes.

[Anonymous]

That's not entirely true, you can try and negotiate that they mark it paid in full. I have done that with collections I paid only a settlement on. It is 100% their discretion, so please keep us posted!

[Anonymous]

So today I settled with them for $8300 so for about 54% of the debt they will mark "account payed and settled" there was no budging on the whole "payed in full" and they told me that I tthey wont sell the forgiven debt  to a collection agency they will send me a letter with all the info. And they divided it in two payments for me. I'm happy one less debt. Do  you think that after a while if I ask they can remove the settled?

[Cherekas]

I'm in the process of settling with them as well but I actually received a judgement because they decided to sue me. Is your account a recent debt and they didnt pursue suing you? My debt is for $2448 and the most recent settlement I received was for $1648 (over a year ago February 2016). I have to make a settlement with the law office they used.

[Anonymous]

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@Anonymous wrote:

So today I settled with them for $8300 so for about 54% of the debt they will mark "account payed and settled" there was no budging on the whole "payed in full" and they told me that I tthey wont sell the forgiven debt  to a collection agency they will send me a letter with all the info. And they divided it in two payments for me. I'm happy one less debt. Do  you think that after a while if I ask they can remove the settled?

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Congrats on being able to settle the account and I glad you won't have to worry about the balance being sold to a CA.  Prepare yourself for receiving a 1099 for the remaining balance.  You can begin the process of GWing them to remove the tradeline, but as always there is no guarantee that they will do it.

Good luck and keep us posted on your progress. 

[wa3more]

If you were insolvent at the time of settlement, you can file form 982 to avoid tax liability on the 1099 income.

[Anonymous]

I settled direclty with them. I was making payments but the payments were getting returned, (long story). So they sent me a letter saiyng that my account was sent to the collections dept of Discover and to call them or acess their collections website beforee further action. I finally did and they were VERY nice and  helpful. They first offered three payments of $3800 for a total of $11,400. I said I could make two payments but that was too high and I would think about it and call back. I never called and then two days ago I found out I am getting some money and I answered them and started to bargain. I told them I needed to speak to my accountant and the agent said she would see what elseshe could do for for me I told  them to call me the next day  at 11 and they did.  She came back with $9000 and I said no, after some back and forth I agreed and already made my first payment. 

[Anonymous]

What does insolvent mean? I currently have very little money but I do own my home outright.